mc_squared Posted November 12, 2008 Share Posted November 12, 2008 Is this the end of free banking? Britons face charges to use cash machines and write cheques By Sean Poulter Last updated at 12:19 AM on 12th November 2008 Comments (0) Add to My Stories Britons face the introduction of charges to use cash machines and write cheques, it is claimed today. Analysts Datamonitor claim it is only a matter of time before free banking, as British consumers know it, is abandoned. The introduction of up-front charges for the right to have a current account is being speeded by a court case investigating the legality of punishing overdraft charges, it is claimed. Hidden costs: Datamonitor claim it is only a matter of time before free banking is abandoned in Britain The Office of Fair Trading is locked in a battle with the big banks to try to get rid of penalty charges for breaching an overdraft limit or a bounced cheque. If successful, the OFT case could see millions of bank customers given the right to reclaim billions of pounds in refunds from the banks for charges dating back six years. Such a move would severely dent the finances of the high street banks at a time when they are trying to cope with huge losses from bad foreign investments. Datamonitor believes the banks would try to shore up their finances by moving to a system of monthly charges - perhaps £5 to £20 a month - on current accounts. As in the United States, the fee would guarantee a minimum level of service, such as a fixed number of cash machine withdrawals, cheques or direct debits per month. The customer would then be faced with paying additional charges, taken from their account each month, for any additional cash withdrawals or debits. Datamonitor analyst Rod Logan said: 'A charge per transaction for standard banking services could be one of the answers, as the banks will need to find other ways to reclaim the estimated £2.6billion they receive from overdraft fees and charges. 'In the current difficult market this is revenue that the banks can ill-afford to lose.' The OFT however believes there is no financial justification for the blanket introduction of charges by the banks. It says customers are already paying an average of £150 a year for their bank account through the fact they get little or no interest on money held in current accounts, plus other stealth charges. Link to comment Share on other sites More sharing options...
Matter-Eater Lad Posted November 13, 2008 Share Posted November 13, 2008 I used to want to move to the UK, but after reading so much on these boards I don't anymore. I would still love to visit but your government sounds ridiculous! Link to comment Share on other sites More sharing options...
Black Rose Posted November 14, 2008 Share Posted November 14, 2008 Free banking is a myth, businesses currently pay for personal account customers to have 'free' banking. It says customers are already paying an average of £150 a year for their bank account through the fact they get little or no interest on money held in current accounts, plus other stealth charges. Damn right, my interest rate has been cut from 10% to 8.5% this week :( Link to comment Share on other sites More sharing options...
professa95 Posted November 14, 2008 Share Posted November 14, 2008 I used to want to move to the UK, but after reading so much on these boards I don't anymore. I would still love to visit but your government sounds ridiculous! ahahahha i might sound nieve but what is free banking? Link to comment Share on other sites More sharing options...
Black Rose Posted November 14, 2008 Share Posted November 14, 2008 It's where you don't pay anything for your bank account directly. So you can use your debit card all the times you want. It's when you go into the red you have to pay. Link to comment Share on other sites More sharing options...
Saffire Posted November 14, 2008 Share Posted November 14, 2008 ahahahha i might sound nieve but what is free banking? It's where you can get some money out of your bank account using anybody's ATM machine anywhere, without having to pay a fee. Link to comment Share on other sites More sharing options...
The Escapist Posted November 14, 2008 Share Posted November 14, 2008 Do you guys actually have free banking. We have never had it in aus as far as I remember Link to comment Share on other sites More sharing options...
Black Rose Posted November 14, 2008 Share Posted November 14, 2008 It's where you can get some money out of your bank account using anybody's ATM machine anywhere, without having to pay a fee. False About 50% of ATMs you have to pay for. Normally the ones in shops/cafes etc. Link to comment Share on other sites More sharing options...
Saffire Posted November 14, 2008 Share Posted November 14, 2008 Do you guys actually have free banking. We have never had it in aus as far as I remember American banks don't have monthly charges as far as I know, just overdraft fees if you take more money out of your account than you have. And David, the ATMs you're referring to aren't "free", hence why I didn't include them in my definition of free banking. ;) Link to comment Share on other sites More sharing options...
Black Rose Posted November 14, 2008 Share Posted November 14, 2008 They always appear in shops and places where they only take cash, forcing you to pay the fee if you come unprepared Link to comment Share on other sites More sharing options...
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